Owning a car in Toronto has never been more difficult.
That’s because the average cost of car ownership has gone up by 52 per cent since 2019 to reach $1,623 per month in 2024, according to a new analysis published by Hardbacon.
That’s not all. Over a span of seven years, the total expense for a car purchased in 2024 is expected to reach $140,408.
In fact, the average cost of new vehicles has jumped from $38,690 in 2019 to $68,574 in 2024.
“This significant increase is primarily attributed to the soaring prices of new vehicles and the cumulative rise in associated costs such as car insurance, fuel, maintenance, and parking,” the report read.
It seems everything vehicle related nowadays has residents in a tough spot. For example, parking fines in Toronto are also seeing an increase, with no-parking violations increasing from $30 to $75 in 2023.
Or what about gas prices? According to the data, in 2019, an average vehicle costs barely $172 per month in gas. Last year, drivers had to pay an average of $227 per month.
And the yearly average for auto insurance in Ontario is projected at $2,428 in 2024.
Additionally, interest payments on car loans now represent 16 per cent of the total cost of ownership in 2024.
“The sharp rise in car ownership costs in Toronto is a wake-up call for many. It underscores the importance of considering all expenses related to owning a vehicle, not just the purchase price,” Julien Brault, CEO of Hardbacon, said.
It’s not all bad, however, because Ontario is forgiving when it comes to vehicle registration. That’s because license plate renewal fees went from $120 to $0 during the pandemic.
And despite Ontarians still having to pay to renew their driver’s licenses, these fees are much lower compared to everywhere else.
